Arlo Technologies (ARLO): “Higher-Risk, Higher-Reward Investment”

Argosy Investors, an investment management company, recently released its second-quarter 2022 investor letter. A copy of the same can be downloaded here. Year to date, the fund returned -25.4% in select accounts compared to -20% for the S&P 500. The main reason for the fund’s underperformance was the poor performance of its most significant holdings. For more information on the fund’s top picks in 2022, please check its top five holdings.

Argosy Investors discussed stocks like Arlo Technologies, Inc. (NYSE:ARLO). Headquartered in Carlsbad, California, Arlo Technologies, Inc. (NYSE:ARLO) is a cloud-based platform-providing company. The stock of Arlo Technologies, Inc. (NYSE:ARLO) closed at $6.86 per share on August 18, 2022. In one month, the stock returned -3.79% and its shares gained 19.72% of their value over the last 52 weeks. Arlo Technologies, Inc. (NYSE:ARLO) has a market capitalization of $601.153 million.

Here is what Argosy Investors specifically said about Arlo Technologies, Inc. (NYSE:ARLO):

“This quarter, similar to the period early in the COVID pandemic, I scoured the portfolio for companies that might have challenges funding their growth plans. During that period, I sold Modine (MOD) and Covetrus (CVET) because I became concerned about those businesses’ debt levels. In the case of Arlo Technologies, Inc. (NYSE:ARLO), they are a money-losing business that I previously had stated was developing a highly profitable SaaS offering for its security cameras. In the context of greater inflation and potential economic recession, I decided to reduce risk, as I believed ARLO could decline significantly if investors’ focus shifted to capital preservation. I still very much like ARLO but it was always a higher-risk, higher-reward investment, and I decided to sell to preserve cash.”

Arlo Technologies, Inc. (NYSE:ARLO) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, Arlo Technologies, Inc. (NYSE:ARLO) was held by 21 hedge fund portfolios at the end of the first quarter, which was 25 in the previous quarter.

We discussed Arlo Technologies, Inc. (NYSE:ARLO) in another article and shared the top stock picks of Cannell Capital. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.